Pursuant to the introduction of CAROTAR, 2020, there were several difficulties that were being faced by legitimate importers resulting in delay or denial of preferential duty benefits available under Free Trade Agreements.
Objective of the AEO Program
Apart from revenue collection, Trade Security and Trade Facilitation are important areas for customs agencies around the world. In order to secure and facilitate the trade, the World Customs Organisation (WCO) has adopted the SAFE framework of standards in 2005, which includes the Authorized Economic Operator Program (AEO Program) as one of three key pillars. India, as a member of the WCO, has adopted the AEO Program through the Customs Act, 1962.